BARTER PROPOSALS

New Zealand Herald, Volume LXXIII, Issue 22353, 26 February 1936, Page 13

BARTER PROPOSALS

GERMANY AND EMPIRE BANK'S DRASTIC ACTION LONDON, Feb. 24 The Berlin correspondent of the Aus- - tralian Associated Press states that, probably as a consequence of Australia refusing the German proposal to barter motor parts for wool, the Reichsbank has issued a decree rejecting all applications for permission to conduct private barter of German goods for Australian and New Zealand wool. The decree also states that several "foreign accounts" have been opened at the Reichsbank, to which is credited the value of German goods exported to Australia and New Zealand, to finance the import of wool. It is assumed that the decree means that every import of wool must be preceded by the purchase of a shipment of German products by the woolexporting country. "It is difficult to understand the reference to New Zealand, sa *4 a leading Auckland wool broker to whom the cablegram was referred last evening. "As far as I know there has been no talk in the Dominion of barter with Germanv, except, perhaps, in connection with the Auckland Harbour Board's wire rope purchase last year. During the 1934-35 season German purchases of wool in New Zealand totalled 30,831 bales. For 1935, New Zealand imported goods valued at £534,442 from Germany and sent in_ exchange goods valued at only £163,554, so that there should be little difficulty in balancing sales of wool with purchases of German products on the lines mentioned in the cablegram.